Fed Hike, Geopolitics, and Crypto: Market Digest
The US Federal Reserve raised interest rates by 25 basis points on September 16, moving the target range for the federal funds rate up to 3.75%-4.00%. Minneapolis Federal Reserve President Kashkari stated that U.S. inflation remains elevated across multiple areas, and core inflation pressures have not been fully alleviated even when excluding food and energy.
Most Fed officials expect at least one more rate hike this year. The US 10-year Treasury yield briefly broke above 5% last Friday and currently trades at approximately 4.98%. Brent crude futures briefly surged to $104.82 per barrel, repricing at around $103.50 following the Riyadh attack.
China's Loan Prime Rate (LPR) remained unchanged for the 16th consecutive month, with the September one-year LPR staying at 3.00% and the five-year-and-above LPR at 3.50%. The interest rate outcome aligned with broad market expectations.